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Playtech CEO: regulation can be our friend

Playtech's move into the financial services sphere has some investors worried
February 23, 2017

These Playtech (PTEC) numbers were good, but a flat share price suggests a market hardly falling over itself. That may reflect ongoing nerves regarding the FCA's proposed protections for retail customers buying contract for difference (CFD) products. Given Playtech's evolving business model, tighter regulation could end up affecting its embryonic financials division (9 per cent of revenue).

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But chief executive Mor Weizer says regulation would be an "opportunity" for Playtech, likening it to the introduction of the point-of-consumption tax to online gaming a couple of years ago. He says a number of internal changes are already under way to comply with new measures, but better legislation could create a higher barrier to entry for small online brokers looking to take market share. Overall, it could improve the quality of earnings - something already evident in Playtech's gaming division, where revenue from regulated markets edged up to 42 per cent from 41 per cent in 2015, led by its live casino offering.

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